This document describes the end-to-end process and data flow between SAP accounts payable, treasury, cash management, and bank accounting. It explains that purchase orders are entered in accounts payable when an organization requests to buy goods, invoices are paid to vendors either through checks or payment files sent to the bank. Treasury manages financial contracts and payments. Cash management creates memo records from payment runs and bank files to track balances. Bank accounting uploads processed payment files to clear AP and treasury documents.

1. SAP Treasury, Cash Management,
Accounts Payable and Bank Accounting
End to End Process Overview
This article describes interconnection between SAP accounts payable, Treasury,
Bank Accounting and Cash Management. Following Diagram describes the
business process and Transactional Data Flow between the processes.
1. Accounts Payable: An Organization requests to buy material goods from
its Vendor and enters Purchase Order in SAP once it is Finalized. When
the Goods arrives from Vendor Good Receipt is done and inventory is
updated. Vendor also sends invoice to the organization. AP Payment run
picks those invoices to pay the vendors depending on payment terms and
Payment file (or Checks) information is send to the Bank.
2. Treasury: Treasury Contracts (Private Placement, Time Deposit, Foreign
Exchange, Money Market, Loan) are created in the SAP once business

2. confirms the contracts. According to Cash Flow of these contacts Treasury
Post flow financial documents are generated. Treasury Payment Run
generates payment documents with respect to the post flow financial
documents. Payment information is send to the bank.
3. Cash Management: Memo Records are Transactional Data for SAP Cash
Management. Memo records are created by AP payment run and Treasury
payment run to provide information on outgoing Payables. Memo records
are also created from Inbound Bank file (BAI, Multi cash or Swift file) to
provide information on the balance available in the bank account and on
the incoming payments and receivables. This process informs the
Treasury business to maintain the balance in bank account needed for the
daily payables.
4. Bank Accounting: The inbound BAI file from bank has the processed
payment information and once uploaded in SAP clears the AP and
Treasury Payment documents automatically.